CPP Mis-selling: The Facts

CPP MIS-SELLING: THE FACTS With the banks still recovering from the PPI scandal, another mis-selling scam has come to light - this time involving mis-sold card insurance. Here's everything you need to know about CPP mis-selling. WHEN YOU RECEIVED YOUR CARD This number actually connected customers to a company called CPP. CREDIT CARD CPP USED THIS OPPORTUNITY TO SELL When your bank sent out your new or replacement card, it may have been sent with a phone number to USELESS INSURANCE PRODUCTS activate the card. THESE POLICIES WERE The two main mis-sold products were: WORTHLESS BECAUSE TYPICAL COST CARD PROTECTION INSURANCE £30 ANK PER YEAR TYPICAL COST THE BANKS ALREADY COVERED CUSTOMERS AGAINST FRAUD AND IDENTITY THEFT £80 IDENTITY PROTECTION INSURANCE PER YEAR BETWEEN JANUARY 2005 AND MARCH 2011 AROUND 23 MILLION POLICIES WERE MIS-SOLD TO AROUND 7 MILLION CUSTOMERS WERE YOU ONE OF THEM? EGG BANK OF SCOTLAND p123 4567 a910 9676 BARCLAYS OL23 4567 8910 876 05/20 DS/10 05/13 0123 4567 8910 9876 OS/L3 05/10 05/13 CAPITAL ONE CLYDESDALE BANK HOME RETAIL GROUP 0123 4567 05/10 05/1 3 4567 8910 9876 75/13 123 4567 8910 4876 05/30 05/13 HSBC MORGAN STANLEY MBNA 0123 4567 8910 9876 05/13 0123 4567 8910 05/10 05/10 0323 456? &410 9876 05/10 05/13 0S/- NATIONWIDE SANTANDER 0123 4567 8910 9876 05/20 05/13 RBS TESCO 0123 4567 8910 9876 05/10 05/13 PERSONAL FINANCE 0123 4567 8910 9876 D5/10 05/13 13 BANKS WERE INVOLVED IN THE MIS-SELLING IN NOVEMBER 2012 THE FCA FINED CPP The Financial Conduct Authority (FCA) says customers were £10.5 MILLION given misleading and unclear information. The policies they bought were either not needed, or to cover risks that had been greatly exaggerated. It fined CPP £10.5m in November 2012 and has since then been working on a programme of compensation for customers. IN TOTAL, CPP WILL HAVE TO PAY OUT AN ESTIMATED £1.3 BILLION IN COMPENSATION HOW DO I YOU DON'T NEED TO TAKE ANY ACTION! MAKE A CLAIM? CPP are going to start contacting affected customers from 29th August 2013. At the time of writing, it is expected that payments will start being made in the spring of 2014. GLADSTONE BROOKESTD www.gladstonebrookes.co.uk © 2013 Gladstone Brookes Ltd Source: http://www.theguardian.com/money/2013/aug/22/cpp-compensation-what-need-know